14:02 GMT +314 December 2019
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    A view of the Federal Reserve September 17, 2015 in Washington, DC. The Federal Reserve held its key interest rate locked at zero Thursday, pointing to the downturn in the global economy even as US growth remains steady.

    US Federal Reserve Keeps Interest Rate Unchanged

    © AFP 2019 / BRENDAN SMIALOWSKI
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    The US interest rate will remain unchanged at 0 to 0.25 percent range as further labor market improvement is needed to effectuate an increase, the Federal Open Market Committee (FOMC) said in a statement on Thursday.

    WASHINGTON (Sputnik) — The FOMC operates under the US Federal Reserve and is charged under federal law to oversee market operations.

    "To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate," the statement read.

    Before announcing an interest rate hike, FOMC explained it has to be "reasonably confident" that US inflation will reach the 2 percent medium term target.

    On July 15, Federal Reserve Chair Janet Yellen said the FOMC will determine the timing of the initial increase in the interest rate on a meeting-by-meeting basis.

    The FOMC has noted that US economic activity has been expanding moderately, and the labor market has continued to make job gains. However, inflation still runs below the desirable longer-run objective.

    "Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term," the FOMC added, noting that it continues to monitor foreign markets.

    The Federal Reserve is the central bank of the United States that is responsible for managing national monetary policy, setting interest rates and regulating banks.

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